MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Finance

By: Senator(s) Horhn

AN ACT TO AMEND SECTION 27-65-53, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF AN OVERPAYMENT OF SALES TAXES IS NOT REFUNDED TO THE TAXPAYER WITHIN SIX MONTHS AFTER THE FINAL DATE FOR FILING THE RETURN, THE TAXPAYER MAY REQUEST A HEARING ON THE CLAIM FOR THE REFUND; TO PROVIDE FOR A REHEARING AND APPEAL FROM DECISIONS OF THE COMMISSION; TO PROVIDE THAT IF AN OVERPAYMENT OF TAX IS NOT TIMELY REFUNDED, INTEREST ON THE OVERPAYMENT SHALL ACCRUE; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-65-53, Mississippi Code of 1972, is amended as follows:

27-65-53. (1) If the commissioner finds that the taxpayer has overpaid his tax for any reason and the taxpayer has discontinued business and there is no subsequent liability upon which the excess may be credited, or if the amount of the excess so paid shall exceed the estimated liability for the next twelve (12) months, the excess shall be refunded to the taxpayer. Such amount shall be certified to the State Auditor of Public Accounts by the commission. The said Auditor is hereby authorized to make such investigation and audit of the claim as he finds necessary. If he finds that the commissioner is correct in his determination, the Auditor may issue his warrant to the State Treasurer in favor of the taxpayer for the amount of tax erroneously paid into the State Treasury, such refunds to be made from current sales tax collections. If part of the overpayment has been disbursed to any municipality under authority of Section 27-65-75, the municipality, having erroneously received the money shall adjust the amount with the commissioner, or the overpayment may be withheld by the state from any funds due by the state to the municipality.

Provided, that where the taxpayer has overpaid his tax, the commissioner may give credit for same and allow the taxpayer to take credit on a subsequent return or, if necessary, in his discretion, have the taxpayer file for a refund as provided herein.

(2) If any overpayment of any tax levied by this chapter, is not refunded to the taxpayer as provided in this section within six (6) months after the final date for filing returns as prescribed by law, the taxpayer may file a petition with the commissioner for a hearing on the claim for refund. Within ten (10) days after the receipt of such petition, the commissioner shall either (1) make refund as requested in the return filed by the taxpayer of the amount claimed by the taxpayer; or (2) set a time and place for such hearing and give notice thereof to the petitioner by registered or certified mail with return receipt requested. The date set for such hearing shall be not less than ten (10) days, nor more than thirty (30) days after notice thereof is given to the petitioner. If, after such hearing, the commissioner shall determine that the petitioner is entitled to a refund for overpayment as claimed in the return, he shall refund to the petitioner the amount determined to be due. If, after such hearing, the commissioner determines that the petitioner is not entitled to a refund for overpayment, he shall so notify the petitioner by registered mail or by certified mail with return receipt requested.

If the petitioner is aggrieved by the decision of the commissioner, he may appeal from the commissioner's decision for a rehearing before the state tax commission. Such appeal for a rehearing shall be made within thirty (30) days from the date of notice by the commissioner, and the commission shall set a time for such rehearing to be held no longer than thirty (30) days from the date of petitioner's request. The commission shall notify the petitioner of its decision within ten (10) days from the date of the rehearing. If the petitioner feels further aggrieved by the decision of the commission, he may appeal in the manner provided for in Section 27-65-47 within thirty (30) days from the receipt of notice of the commission's decision.

If any overpayment of tax as reflected on a return filed, and verified by the commissioner, is not refunded within ninety (90) days after the prescribed due date of the return or the date of the return is filed, whichever is later, interest at the rate of one percent (1%) per month shall be allowed on such overpayment computed for the period after expiration of the ninety-day period provided herein to the date of payment.

SECTION 2. This act shall take effect and be in force from and after July 1, 1997.